Callinan Mines Limited
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Callinan Mines Limited

December 20, 2005 14:48 ET

Callinan Commences Aggressive Winter Drilling Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 20, 2005) - Callinan Mines Limited has commenced winter diamond drilling programs to further define promising targets on its Philips Lake and Pine properties in the prolific Thompson copper-nickel belt of northern Manitoba.

At Phillips Lake, Hole CAP4 will be drilled to a vertical depth of 1,200 feet to intersect a very strong geophysical conductive zone located by a down- hole probe. The conductive zone is on plane with sulphide mineralization, below Hole CAP2. In February 2005, Hole CAP2 intersected 550.9 ft. of .236% nickel and .009% copper, including 4.9 ft. of .478% nickel, 2.8 ft. of .998% nickel, and 66.1 ft. of .328% nickel.

Callinan field crews on the Pine property are currently cutting grid lines for Deep Pulse EM surveys. These surveys are designed to detail a target that was located by hole CAS 3, which returned assays of 2.04% nickel, .8% copper, .13% cobalt, .153 g/t platinum, and .5 g/t palladium over 2.6 ft. Diamond drilling will follow.

Callinan's Phillips Lake and Pine properties are located on the same system of ultra mafic folds that host INCO's Thompson, Soab North, Soab South, Pipe and Birchtree mines, and Falconbridge Mines' Bucko Lake deposit. The Thompson and Birchtree Mines in 2003 produced 67.8 million and 25.8 million lbs. of nickel, respectively. (Source: infomine.com.)

Meantime, in early 2006, the company will also conduct a winter diamond- drilling program on its Fox River Project in addition to line cutting and magnetometer surveys. Geologists have stated that the Fox River area could well host Canada's next massive sulphide nickel deposit. Callinan crews will drill-test promising nickel anomalies defined by previous geophysical and geochemical surveys. The Fox River property also includes occurrences of kimberlite indicator minerals, which Callinan confirmed through assays of overburden samples in May, 2005. The company will further investigate these potentially diamondiferous occurrences in the future.

Callinan president Mike Muzylowski, who has played a key role in the discovery of some 15 producing mines in Canada, including 13 in Manitoba, noted that the company's current winter diamond drilling programs reflect its aggressive exploration policy and follow two recent capital financings that netted $1 million.

"Winter diamond drilling in northern Manitoba is extremely challenging," Mr. Muzylowski said. "But our crews are up to the task, and the compelling results from their efforts on our Thompson properties last winter mandated our current follow-up diamond drilling programs." The programs are under the supervision of P.J. Deveaux, P.Geol. of Vancouver, a Qualified Person as defined in NI 43-101.

Callinan Mines is a well established Canadian mineral exploration company which owns a royalty and net profits interest in the Callinan Mine and the 777 Mine. Both mines are located in Flin Flon, Manitoba and are currently operated by Hudbay Minerals.

CALLINAN MINES LIMITED

"Mike Muzylowski", President & CEO